Sugar futures down on profit-taking

NEW DELHI: Sugar futures today fell by Rs 24 to Rs 3,318 per quintal as speculators locked-in gains amid the government's decision to release more sugar in the open market to check the sweetner's price.

However, strong demand in the spot markets for the ongoing festive season, restricted the fall.

At the National Commodity and Derivatives Exchange, sugar for delivery in August fell by Rs 24, or 0.72 per cent, to Rs 3,318 per quintal, with an open interest of 34,850 lots.

Similarly, the sweetener for delivery in September shed Rs 13, or 0.38 per cent, to Rs 3,380 per quintal, with an open interest of 32,860 lots.

Marketmen said fall in sugar futures prices was mostly due to profit-booking by speculators at existing higher levels and the government's decision to release 2.9 lakh tonnes of more sugar in the open market to control the sweetner's price.

However, strong demand in the physical markets from bulk consumers and poor rainfall in cane-growing areas restricted the fall, they said.

Meanwhile, sugar prices were ruling at Rs 34-35 a kg in the national capital a fortnight ago and now have touched Rs 37-38 a kg.